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1 May 2014
Quinton Man Indicted for Threatening African-American Man and Another Person at RestaurantRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Quinton man for threatening an African-American man at a restaurant in the Walker County town, and for threatening another person who ordered Higgins to leave the restaurant because of his behavior, announced U.S. Attorney Joyce White Vance and Acting Assistant Attorney General Jocelyn Samuels, head of the U.S. Department of Justice's Civil Division.
A three-count indictment filed in U.S. District Court charges JEREMY HEATH HIGGINS, 28, with one felony count and two misdemeanor counts of interference with a federally protected activity. The indictment charges Higgins with approaching and threatening an African-American man on June 14, 2013, at the Alabama Rose Steakhouse because the man was at the restaurant with a white woman. According to the indictment, another person ordered Higgins to leave the premises of the restaurant because of his behavior toward the African-American man, after which Higgins shouted a threat to burn down the restaurant. The indictment further charges that Higgins threatened the person who ordered him to leave the restaurant by painting graffiti on the restaurant’s exterior and fence.
"This case reaffirms our commitment to prosecuting hate crimes and holding people responsible for conduct motivated by racial animus," Vance said.
If convicted of the felony count, Higgins could face a maximum sentence of 10 years in prison and a $250,000 fine. For each of the misdemeanor charges, Higgins could face a maximum sentence of one year in prison and a $200,000 fine.
The FBI is investigating the case and is being prosecuted by Assistant U.S. Attorney Robin Beardsley Mark and Justice Department Civil Rights Division Trial Attorney David Reese.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Quinton Man Indicted for Threatening African-American Man and Another Person at RestaurantRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Quinton man for threatening an African-American man at a restaurant in the Walker County town, and for threatening another person who ordered Higgins to leave the restaurant because of his behavior, announced U.S. Attorney Joyce White Vance and Acting Assistant Attorney General Jocelyn Samuels, head of the U.S. Department of Justice's Civil Division.
A three-count indictment filed in U.S. District Court charges JEREMY HEATH HIGGINS, 28, with one felony count and two misdemeanor counts of interference with a federally protected activity. The indictment charges Higgins with approaching and threatening an African-American man on June 14, 2013, at the Alabama Rose Steakhouse because the man was at the restaurant with a white woman. According to the indictment, another person ordered Higgins to leave the premises of the restaurant because of his behavior toward the African-American man, after which Higgins shouted a threat to burn down the restaurant. The indictment further charges that Higgins threatened the person who ordered him to leave the restaurant by painting graffiti on the restaurant’s exterior and fence.
"This case reaffirms our commitment to prosecuting hate crimes and holding people responsible for conduct motivated by racial animus," Vance said.
If convicted of the felony count, Higgins could face a maximum sentence of 10 years in prison and a $250,000 fine. For each of the misdemeanor charges, Higgins could face a maximum sentence of one year in prison and a $200,000 fine.
The FBI is investigating the case and is being prosecuted by Assistant U.S. Attorney Robin Beardsley Mark and Justice Department Civil Rights Division Trial Attorney David Reese.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Protection of Voting Rights in the 2014 Election CycleRead the Press Release
United States Attorney Kenyen R. Brown announced today that Assistant United States Attorney (AUSA) Vicki M. Davis will oversee the efforts of the Southern District of Alabama’s voting rights protection for the upcoming June 2014, primary elections and the 2014 general election. AUSA Davis has served as the District Election Officer (DEO) for the Southern District of Alabama for many years. She is responsible for overseeing the District=s handling of complaints of election fraud and voting rights abuses in consultation with the Department of Justice in Washington.
United States Attorney Kenyen Brown stated, Aevery citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department seeks to ensure public confidence in the integrity of the election process by providing local points-of-contact in order that the public may report possible election fraud and voting rights violations while the polls are open.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. The law also provides special protections for the rights of voters in order that they may vote free from acts of intimidation or harassment. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Federal law also protects the right of voters to mark their own ballot or to be assisted in marking their ballot by a person of their choice.
The voting franchise is the cornerstone of American democracy. We must all strive to ensure that those who are entitled to the voting franchise exercise it if they choose, and equally that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses and to ensure that such complaints are directed to the appropriate authorities. AUSA/DEO Davis can be reached by the public at the following telephone number: (251) 441 5845.
The Federal Bureau of Investigations (FBI) has Special Agents available in each field office and resident agency to receive allegations of election fraud and other election abuse. The local FBI field office can be reached at (251) 438-3674.
Complaints concerning ballot access issues or allegations of discrimination can be made directly to the Civil Rights Division=s Voting Section in Washington by calling 1-800-253-3931 or (202) 307-2767.
United States Attorney Brown stated, Aensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.
Pine Ridge Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of sexual abuse was sentenced on April 29, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tobacco was immediately turned over to the custody of the U.S. Marshals Service.
Daniel Tobacco, age 20, was sentenced to 48 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Tobacco was indicted for Sexual Abuse by a federal grand jury on June 12, 2012. He was convicted following a federal jury trial in Rapid City in January of 2013.
The conviction stems from Tobacco engaging in a sexual act with an unconscious female at Pine Ridge on February 23, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Supervisory Assistant U.S. Attorney Gregg S. Peterman handled the sentencing.
Pierre Woman Sentenced for Making False Statements to A Federal AgencyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, woman convicted of Making False Statements to a Federal Agency was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Kelsey Howe, age 20, was sentenced to 2 months in custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Howe was indicted by a federal grand jury on November 14, 2013. She pled guilty on February 3, 2014.
The conviction stems from an incident on October 31, 2013, when law enforcement received information that Jason Garreau, an individual they were searching for following a shooting with law enforcement, had called family from a telephone number that was associated with Howe’s trailer home in Pierre. The officer spoke with Howe on the telephone and told her there had been an officer involved in a shooting in Fort Thompson and that he needed to locate Garreau to speak with him. The officer asked Howe if she knew Garreau’s location. Howe told the officer that she did not. The officer then asked Howe if she was at her residence, and she said she was at a relative’s home in southeast Pierre.
A few minutes after the call, officers observed Howe exit her residence. She was stopped by law enforcement a few blocks away, and was again asked if anyone was inside her residence. She said no one was inside the home, and said she had not seen Garreau in the past two weeks. Howe was then confronted by an officer with the drug task force about lying to the officers. She finally stated that she knew Garreau, and he was, in fact, inside her residence at the time. Howe told agents that Garreau had arrived at her residence around 12:30 a.m. and that he had a long black gun with him in the house. A lengthy standoff with Garreau ensued and he was eventually taken into custody.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Howe was immediately turned over to the custody of the U.S. Marshals Service.
Parmelee Man Sentenced for Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Failure to Appear was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Adam Poor Bear, age 24, was sentenced to 12 months and 1 day in custody, and a $100 special assessment to the Federal Crime Victims Fund.
Poor Bear was indicted for Failure to Appear by a federal grand jury on December 10, 2013. He pled guilty on March 5, 2014.
On December 2, 2013, Poor Bear, having been charged with Assault with a Dangerous Weapon and Supervised Release Revocation, failed to appear for his sentencing hearing as ordered by the court.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Poor Bear was immediately turned over to the custody of the U.S. Marshals Service.
Newport News Man Sentenced to 10 Years for Sex Trafficking of A Minor and Passing Counterfeit MoneyRead the Press Release
NORFOLK, Va. – Todd Jackson, 25, of Newport News, Va., was sentenced today to 10 years in prison, followed by 10 years of supervised release, for sex trafficking of a minor and conspiracy to pass counterfeit money.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office; and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement after sentencing by Senior United States District Judge Henry Coke Morgan, Jr.
Jackson pleaded guilty on January 28, 2014. According to court documents, Jackson was stopped by Virginia Beach Police Department in July 2013. Jackson was with a 17 year old girl who was listed as a runaway. The girl stated that she had been working as a prostitute for Jackson for the past 10 days in the Hampton Roads area. She stated that Jackson bought her new clothes to make her look older and told her to tell everyone she was actually 19 or 20 years old. Jackson took all of the money she made and he advertised her services on backpage.com.
In addition, Jackson was also indicted and pleaded guilty to conspiracy to pass counterfeit currency. Todd Jackson, along with Alicia McDuffie and Curtis Crumity who were also convicted, passed thousands of dollars of counterfeit currency to various Target stores in the Hampton Roads areas. The defendants would purchase high-dollar gift cards or toys, and then return the toys to the same or different Target stores in exchange for genuine currency.
The sex trafficking case was investigated by the Federal Bureau of Investigation and Virginia Beach Police Department. The counterfeit case was investigated by the United States Secret Service. Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Jersey Man Pleads Guilty to Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New Jersey resident pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to possessing heroin with the intent to distribute it in January 2014.
According to United States Attorney Peter Smith, the defendant, George Wormley, age 37, of Montclair, New Jersey, admitted that he possessed approximately 300 bags of heroin and intended to sell it to others on January 3, 2014, in Kingston, Pennsylvania.
Wormley was indicted by a federal grand jury on March 25, 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, and the Luzerne County District Attorney’s Office.
Wormley faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Mannion ordered a pre-sentence report to be completed. No date was set for sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mobridge Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 28, 2014, by U.S. District Judge Charles B. Kornmann.
Brandon Noisy Hawk, age 32, was sentenced to 21 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Noisy Hawk was indicted by a federal grand jury on July 17, 2013. He pled guilty on December 2, 2013.
The conviction stems from Noisy Hawk failing to register as a sex offender between April 13, 2013, and June 30, 2013. Noisy Hawk was previously convicted of a sex offense in federal court and is required by federal law to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Noisy Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Convicted of Trafficking MarijuanaRead the Press Release
CORPUS CHRISTI, Texas - Roberto Veliz, 34, a U.S. citizen from Mission, has been convicted of one count of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. A federal jury in Corpus Christi convicted Veliz this morning following a two-day trial and less than three hours of deliberation.
During trial, the government presented testimony that from Feb. 15, 2013, until Oct. 5, 2013, Veliz hired women to transport marijuana for him from Mission to places such as Houston and San Antonio. During that time, law enforcement agents seized more than 160 kilograms of marijuana from the women transporting the marijuana on his behalf. In addition to those amounts seized, trial evidence proved Veliz was transporting marijuana from Mission to Houston or San Antonio at least once a month, sometimes more. The marijuana was wrapped in plastic bundles and concealed inside suitcases.
U.S. District Judge Nelva Gonzales Ramos, who presided over trial, has set sentencing for Aug. 5, 2014, at which time he faces a mandatory minimum of five and up to 40 years imprisonment as well as $5 million fine.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Chad W. Cowan.
Mission Man Charged with Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Burglary and Larceny.
Eugene Watts, Jr., age 19, was indicted on April 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 24, 2013, in Mission, Watts and others entered an unoccupied structure and took several items valued at more than $1,000.
The charge is merely an accusation and Watts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Watts was released to a third party custodian pending trial. A trial date has not been set.
Mission Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Logan Lafferty, age 27, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 8, 2014, Lafferty did use a dangerous weapon, a vehicle, to assault law enforcement officers.
The charge is merely an accusation and Lafferty is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lafferty was released to a third party custodian pending trial. A trial date has not been set.
Mine Operator Sentenced to Prison for Obstructing MSHA InvestigationRead the Press Release
ABINGDON, VIRGINIA – Elmer Fuller, of Bristol, Virginia, was sentenced in United States District Court in Abingdon, Virginia, for obstructing a Mine Safety and Health Administration investigation.
United States District Judge James P. Jones sentenced Fuller, 58, of Bristol, Virginia, to imprisonment for a term of three months. In addition, Fuller was ordered to pay a fine of $3,000 and serve a two year term of supervised release upon his release from prison. His company, A B & J Coal, was placed on probation for a term of one year and ordered to pay a fine of $25,000.
On June 8, 2009, MSHA inspectors determined that someone at A B & J Coal had illegally wired the electrical connections to a belt feeder without any ground fault protection. This situation created a risk of serious injury or death to any minor who came in contact with the feeder. During the investigation, Fuller, one of the owners of A B & J Coal, lied to the investigators about who had illegally wired the feeder. His false statements substantially interfered with the investigation.
“The safety of coal miners is of the utmost importance,” United States Attorney Timothy J. Heaphy said today. “Interfering with an MSHA investigation is a serious matter. We will continue to aggressively pursue those whose actions create unnecessary dangers to the lives of coal miners.”
Fuller also was sentenced to imprisonment for three months, to be served concurrently, for tax evasion. As part of the plea agreement, he paid all back taxes owed prior to the sentencing hearing. Fuller received a lower sentence than he would otherwise have received because he provided substantial assistance in the investigation of other criminal activity.
Assistant United States Attorney Randy Ramseyer prosecuted the case on behalf of the United States. The case was investigated by the Norton, Virginia, Office of the Mine Safety and Health Administration and the Bristol, Virginia, Office of the Internal Revenue Service – Criminal Investigation.Mereaux Man, Glen Mcinerney, Sentenced to 41 Months in Prison After Pleading Guilty to Bank Fraud, Money Laundering and Wire FraudRead the Press Release
GLEN MCINERNEY, age 42, a resident of Meraux, Louisiana, was sentenced today by U.S. District Judge Jane Triche Milazzo to 41 months in prison, followed by 3 years of supervised release, announced U.S. Attorney Kenneth Polite. MCINERNEY previously plead guilty to a four-count Superseding Bill of Information charging him with two counts of bank fraud, one count of money laundering, and one count of wire fraud. MCINERNEY was also ordered to make restitution to the three victims of his crimes in the amount of $845,083.18.
According to court documents, MCINERNEY owned and operated GM Motors and Used Cars (“GM Motors”). MCINERNEY maintained a bank account for GM Motors at Regions Bank. Between May 2, 2009, and June 20, 2009, MCINERNEY wrote checks to straw payees to cash the checks and return the cash to him so that he could deposit portions of the proceeds back into the Regions account. MCINERNEY timed the cash deposits to occur prior to account debits, which lead to the straw payees cashing checks that he knew would ultimately bounce. In total, MCINERNEY wrote 288 such checks, resulting in a loss to Regions Bank of approximately $17,000.
Separately, between December 29, 2008, and January 7, 2009, MCINERNEY also defrauded Gulf Coast Bank & Trust by negotiating six checks purportedly drawn on funds from a bank account at Twin City Federal National Bank in Minneapolis, Minnesota. MCINERNEY knew that the Twin City Federal National Bank account had been closed since July 30, 2007, that the account belonged to someone other than MCINERNEY, and which MCINERNEY did not have authority or control. These actions caused a loss to Gulf Coast Bank & Trust of approximately $28,083.18.
Finally, between January 3, 2007, and December 15, 2008, MCINERNEY defrauded an individual who had provided him with collateral for a short-term business loan by falsely representing that he had purchased used trailers from the Federal Emergency Management Agency (“FEMA”) that he intended to resell, when, in fact, he did not purchase such trailers in the first place. MCINERNEY’S fraudulent misrepresentations caused the individual who loaned him the money to suffer losses of approximately $800,000.
"Glen McInerney was sentenced today after pleading guilty to using "straw" payees to cash checks, committing bank fraud and laundering money to hide his part in illegal financial transactions," stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation, New Orleans Field Office. "Money laundering is not a victimless crime. Not only are innocent people ‘duped’ by such schemes, but the underground, untaxed economy harms the entire nation's economic strength. Special Agents of IRS Criminal Investigation are committed to lending their expertise as the world's premiere financial investigators to all crimes of greed."
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Daniel P. Friel and Jordan Ginsberg.
Media AdvisoryRead the Press Release
There will be an Investiture Ceremony for United States Attorney Kevin W. Techau on Friday, May 2, 2014, at 12:30 p.m., at the federal courthouse located at 111 Seventh Avenue SE, Cedar Rapids, Iowa. U.S. Senators Tom Harkin and Chuck Grassley are scheduled to attend along with other honored guests.
Credentialed members of the press are invited to use camera equipment during the ceremony. Use of camera equipment is otherwise prohibited in the federal courthouse.
McLaughlin Woman Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman convicted of Distribution of a Controlled Substance was sentenced on April 28, 2014, by U.S. District Judge Charles B. Kornmann.
Adjoni Jones, a/k/a Adjoni Archambault, age 33, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Jones was indicted for Distribution of a Controlled Substance to a Person under the Age of 21, Distribution of a Controlled Substance, and Child Abuse and Neglect by a federal grand jury on June 12, 2013. She pled guilty to Distribution of a Controlled Substance on December 2, 2013.
The conviction arose from incidents that occurred between July 1, 2009, and July 30, 2012, when Jones distributed and possessed with intent to distribute methylphenidate, a Schedule II controlled substance, at McLaughlin.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys Kathryn Rich and Jay Miller prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service to begin serving her sentence.
McHugh Construction to Pay $12 Million to Settle Contract Fraud Claims by U.S. and Illinois on Seven Area Public Works ProjectsRead the Press Release
CHICAGO — A Chicago-based construction company will pay the United States and the State of Illinois $12 million to resolve allegations of fraud on government programs designed to benefit women- and minority-owned sub-contractors under the terms of a civil settlement agreement announced today. The contractor, James McHugh Construction Co., Inc., allegedly failed to abide by federal and state requirements for the participation of disadvantaged businesses in contracts to perform seven public construction projects. The work on area roads, highways, and transit lines was funded by the federal and state governments between 2004 and 2011.
The federal and state governments claimed that McHugh violated the federal and Illinois False Claims Acts by making false statements and claims for payment to government agencies regarding McHugh’s compliance with federal and state requirements to include disadvantaged businesses in the construction projects.
As a result of the $12 million settlement, the federal government will receive $7.2 million and the state government will receive $4.8 million. In a separate administrative settlement and compliance agreement, McHugh agreed to implement a corporate compliance program, appoint a compliance officer, and be subject to an independent monitor for three years, in exchange for the federal, state, and City of Chicago transportation agencies and contracting authorities’ agreement not to bar McHugh from future government contracts. This allows McHugh to continue pursuing and performing public works projects while ensuring that it remains compliant with disadvantaged business regulations.
“It was more costly in the long run for McHugh to avoid its obligations to hire womenand minority-owned businesses than it would have been simply to comply with the requirements and retain disadvantaged businesses to actually participate in these public construction projects,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “It’s important that McHugh and other companies realize that compliance with these requirements is both a good business decision and the right thing to do,” he added.
“Our investigation revealed that McHugh Construction falsely used subcontractors to help secure bids for major construction projects funded by and for Illinois taxpayers,” Illinois Attorney General Lisa Madigan said. “The company used women-owned businesses to submit false claims to the state and federal governments for millions of dollars when in fact, those businesses never completed the level of work required by law.”
Mr. Fardon and Attorney General Madigan announced the settlement with Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Michelle McVicker, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General in Chicago; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The settlement arose from a lawsuit that was filed under seal in 2008 by Ryan Keiser, who was a project manager for Perdel Contracting Corp. and Accurate Steel Installers, Inc. (ASI), at three of the McHugh construction sites. The lawsuit, which was unsealed today, was filed under the qui tam or whistleblower provisions of the federal and state False Claims Acts. United States, et al., ex rel. James McHugh Construction Co., et al., No. 08 C 2443 (N.D. Ill.).
The similar federal and state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. Mr. Keiser will receive 17 percent of the $12 million settlement or $2,040,000 ― $1,224,000 from the United States share, and $816,000 from Illinois’ portion of the settlement.
The settlement covers McHugh’s contracts on the following projects: the Washington/Monroe Viaducts over Interstate 90/94 for the Chicago Department of Transportation (CDOT) in 2005; the Red Line Howard Station for the Chicago Transit Authority in 2006; the North Avenue Bridge for CDOT in 2006; the Brown Line for the CTA in 2006; the Eastbound Interstate 88/Fox River Bridge for the Illinois State Toll Highway Authority in 2007; the Westbound Interstate 88/Fox River Bridge for the toll highway authority in 2008; and the Wacker Drive Viaduct Reconstruction from Randolph to Monroe streets for CDOT in 2010.
The federal and state governments contended that in bids for these contacts, in the final contracts, and in claims for payment, McHugh falsely stated that Perdel and ASI, which were both certified as “disadvantaged business enterprises” (DBE) owned by Elizabeth Perino, would perform or had performed work on the projects in satisfaction of federal and state DBE participation requirements in the contracts. The governments contended that contrary to McHugh’s statements, Perdel and ASI often functioned merely as “pass-throughs,” performing little, if any, work that would qualify for participation credit under federal and state DBE requirements. Perino, who owned Perdel and ASI in Lockport, was charged with federal mail fraud in 2011, and the case remains pending.
According to the settlement agreement, the governments also contended that Perdel and ASI’s contracted work for McHugh often exceeded the companies’ capacity and experience. Although their projects with McHugh were substantially greater in size and scope than they had previously performed, Perdel and ASI’s expertise to perform larger and more complex projects did not change correspondingly. Rather than Perdel and ASI performing, managing, or supervising the work that McHugh represented they would, McHugh frequently managed union workers they each hired. In some cases, McHugh directed Perdel and ASI as to which union crews to hire.
McHugh, not Perdel or ASI, also selected certain suppliers on each of the contracts, determined the quantity and quality of those materials, negotiated the price, and often drafted a purchase order for Perdel or ASI to put on their letterhead, the governments contended. That kind of conduct violates federal and state provisions that are designed to give a share of the actual work of government-funded construction projects to minority- and women-owned businesses.
The settlement is neither an admission of liability by McHugh nor a concession by the state and federal governments that their contentions are not well founded, and McHugh expressly denies the claims.
The settlement was reached on behalf of the U.S. Department of Transportation, the Illinois Department of Transportation, the Illinois State Toll Highway Authority, and the Regional Transportation Authority.
The separate three-year administrative monitoring settlement and compliance agreement was reached between McHugh and the Federal Transit Administration, the Federal Highway Administration, the U.S. and Illinois Transportation Departments and their procurement officers, and the City of Chicago. In exchange for the government entities’ agreement not to pursue any suspension or debarment action against McHugh for the covered conduct, McHugh agreed to implement a corporate compliance program and appoint a compliance officer who is knowledgeable about DBE programs. The company also agreed to retain an independent monitor to evaluate McHugh’s performance and submit periodic reports to the government agencies and officials, and to make six presentations to those agencies and officials to discuss and promote compliant policies and procedures for working with DBE firms.
Assistant U.S. Attorney Donald Lorenzen represented the U.S. Attorney’s Office in the case. Assistant Illinois Attorney General Kate Pomper Costello represented the Illinois Attorney General’s office.
Settlement Agreement
Settlement and Compliance AgreementLocal Man Charged with Trafficking in Counterfeit Louis Vuitton, Coach and Other MerchandiseRead the Press Release
HOUSTON – Han Woon Liew, 45, of Sugarland, has been arrested for conspiracy to traffic in counterfeit goods, announced United States Attorney Kenneth Magidson.
The indictment, returned under seal April 16, 2014, was unsealed today upon Liew’s arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson tomorrow at 10:00 a.m.
The one-count indictment alleges that from January 2012 and continuing through the date of the indictment, Liew intentionally trafficked in goods, specifically counterfeit Louis Vuitton, Michael Kors, Coach and Gucci purses and wallets. Liew knowingly used counterfeit marks, which were registered trademarks, in an attempt to make the items appear legitimate, according to the allegations.
The maximum penalty, upon conviction, for conspiring to traffic in counterfeit goods is 10 years imprisonment and a maximum fine of $2 million. The indictment also includes an order of forfeiture of $3 million.
The investigation leading to the charges was conducted by Homeland Security Investigations. Assistant United States Attorney (AUSA) Celia Moyer and Special AUSA Mark Evans are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local In-Home Healthcare Provider Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – TINA KUEHL pled guilty yesterday to bank fraud charges involving her fraudulent statements involving payment of a bank loan. In a separate unrelated case, she and her company, Better Way Home Care, pled guilty to multiple healthcare fraud charges. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
According to court documents regarding the bank fraud charges, in December 2010 Kuehl’s mother obtained a $305,000 property loan from the Community Bank of Owensville, MO, a branch of the Maries County Bank. Both Kuehl and her mother are listed on the deed of trust for the property. On many occasions, they did not make timely payments on the loan and in July 2013, Maries Bank foreclosed on the property. After the foreclosure, Kuehl devised a scheme to defraud Maries Bank by submitting fraudulent checks as proof that she had made loan payments to the bank. On six occasions, she changed the payee on copies of unrelated cancelled checks so that it would appear that she had made loan payments to Community Bank of Owensville. She continued the fraud by claiming to have made cash payments to a bank employee on two occasions. The bank employee was on sick leave on the day Kuehl claimed she made the first $4,000 cash payment to the employee at the bank. Kuehl claimed that she made a second cash payment of $6,900 to a bank employee at a truck stop. Finally, Kuehl retained attorneys to represent her after the foreclosure, and falsely told them she had made payments by checks and cash, which the bank had not credited to her loan account.According to court documents regarding the healthcare fraud charges, Better Way was a home health care agency located in Ellisville, Missouri. Tina Kuehl was the owner, president and administrator of Better Way and was responsible for the day-to-day operations. Medicare pays home health agencies for 60-day episodes of care. Medicare makes two payments to the home health care agencies, the first before the service is provided based on the patient’s anticipated need for services and a second payment at the end of the 60-day episode of care based on the actual number of services provided.
Kuehl has no medical or health care education, training or experience, which would qualify her to assess or evaluate patients or determine their care needs. Prior to opening Better Way, she worked in the cosmetology field. Better Way hired nurses and contracted with therapists to assess and evaluate patients and to determine the patients’ needs for therapy services. Better Way staff recorded this information on the Outcome and Assessment Information Set form (OASIS).To increase the reimbursement that Better Way would receive, Kuehl directed Better Way nurses and other employees to make false statements on the OASIS forms and the reimbursement claim forms. At Kuehl’s direction, the staff increased the number of therapy visits, although Kuehl knew the patients did not need and had not received the therapy; falsified the diagnosis codes; and exaggerated the patients’ conditions and the reasons the patients were receiving home health care services from Better Way. When some employees refused to increase the number of therapy visits, Kuehl personally increased the number of visits. In some instances the patient had received no therapy at all.
Kuehl, Ballwin, Missouri, pled guilty to one felony count of bank fraud, one felony count of healthcare fraud, two counts of making false statements relating to healthcare and one count of making false statements to federal agents. She appeared before United States District Judge Henry Autrey on Wednesday, April 30. Sentencing has been set for July 28, 2014.Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; healthcare fraud carries a maximum penalty of ten years prison and/or fines up to $250,000; and each of the other charges carry a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services, the FBI, and the Missouri Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.
Justice Department Requires eBay to End Anticompetitive <br /> “No Poach” Hiring AgreementsRead the Press Release
The Department of Justice announced today that it has reached a settlement with eBay Inc. that prevents the company from entering into or maintaining agreements with other companies restraining employee recruitment and hiring.
The department’s Antitrust Division filed the proposed settlement in the U.S. District Court for the Northern District of California in San Jose. If approved by the court, the settlement would resolve the department’s competitive concerns and the original lawsuit filed on Nov. 16, 2012.
In its lawsuit, the department alleged that senior executives and directors of eBay and Intuit entered into an agreement, beginning no later than 2006, that prevented each firm from recruiting employees from the other and that prohibited eBay from hiring Intuit employees that approached eBay.In the high technology sector, employees with advanced or specialized skills are highly valued and sought after. Companies often heavily recruit and hire experienced and capable employees of other technology firms, offering significantly better job opportunities or pay. The agreement between eBay and Intuit diminished important competition between the firms to attract highly skilled technical and other employees to the detriment of affected employees who had less access to better job opportunities and higher pay.
“eBay’s agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labor market and causing employees to lose opportunities for better jobs and higher pay,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The proposed settlement resolves the department’s antitrust concerns and ensures that eBay will not engage in similar conduct in the future.”Previously, in denying eBay’s motion to dismiss the case, the district court found that the agreement alleged by the department, if proven, would constitute a naked horizontal market allocation agreement that was manifestly anticompetitive and lacking in any redeeming virtue, and thus could be found per se unlawful.
The proposed settlement would prohibit eBay from entering or maintaining anticompetitive agreements relating to employee hiring and retention for five years. It would broadly prohibit eBay from entering, maintaining or enforcing any agreement that in any way prevents any person from soliciting, cold calling, recruiting, hiring or otherwise competing for employees. eBay will also implement compliance measures tailored to these practices. Intuit is already subject to a similar consent decree, and for that reason was not a defendant in this case.
Today, the California Attorney General’s Office also filed a settlement in its related case, The People of the State of California v. eBay Inc., based on the same facts alleged in the department’s complaint.
This case and the proposed settlement arose out of a series of Antitrust Division investigations into employee recruitment practices at a number of high tech companies. In September 2010, the Antitrust Division filed a civil antitrust lawsuit against six high tech firms– Adobe Systems Inc., Apple Inc., Google Inc., Intel Corporation, Intuit Inc. and Pixar–for antitrust violations arising from “no cold call” agreements. In December 2010, the Antitrust Division filed a civil antitrust lawsuit against Lucasfilm Ltd. alleging antitrust violations involving similar activities restraining competition for employees. In both cases, settlements were filed at the same time the lawsuits were filed resolving the department’s competitive concerns. Today’s proposed settlement with eBay is substantially the same as the court-approved settlements in the two prior cases.eBay Inc. is a Delaware corporation with its principal place of business in San Jose, Calif.
The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to James J. Tierney, Chief, Networks & Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 7100, Washington D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jerseyville Woman Charged for Threatening to Destroy Calhoun County High SchoolRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Michelle Lynn Smith, 36, of Jerseyville, Illinois, was charged by way of a criminal complaint for conveying a false threat.
On April 28, 2014, authorities responded to a potential bomb threat at the Calhoun County High School in Hardin. The response was prompted by the discovery of a computer-generated note in the ladies’ washroom. The note read as follows:
This school is going down today. KABOOM!!!!!!!!!!!!!! Im tired of all the people here. Everyone is going down, the school will b n flames. It is so stupid here. I cant take it ne more. The teachers suck and don’t do ne thing to help u. All that matters is what ur name is. If I had certain names I would not have the truble I do. Don’t matter, this place sucks and will not be here for long. So long and GOOD-BYE!!!!!!!!!
Authorities immediately evacuated the school and notified the parents of the students. The Secretary of State Police Bomb Squad and Capitol Police K-9s conducted a search of the building, but no explosives were located. Following these events, law enforcement found evidence and conducted interviews which lead to the criminal charges against Smith, a teacher at the high school.
The charge of Conveying a False Threat carries maximum penalties of five years of imprisonment, three years of supervised release, and a $250,000 fine.
“Actions such as these cause not only massive wastes of law enforcement resources, but strike fear into the hearts of parents and students alike. Because children should feel safe in their schools, we take these charges very seriously.” noted United States Attorney Wigginton.
Smith is being held in federal custody, without bond, pending a detention hearing set on Monday, May 5, 2014, at 11:00 am, in United States District Court in East St. Louis.
A criminal complaint is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by the Illinois State Police, with the assistance of the Calhoun County State’s Attorney, Calhoun County Sheriff’s Department, Jersey County Sheriff’s Department, the Jerseyville Police Department, the Illinois Secretary of State Police Bomb Squad and Capitol Police K-9s, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant U.S. Attorney Michael Hallock.
Jacksonville Man Sentenced to 24 Years for Sex Trafficking by Force, Fraud or CoercionRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis yesterday sentenced Narada Randolph (32) to 24 years in federal prison for sex trafficking by force, fraud or coercion. Randolph was indicted on June 27, 2012. He pleaded guilty in November 2013.
According to court documents, from late 2007 through the middle of 2011, Randolph forced, by means of physical violence, four women to engage in the commercial sex trafficking industry. In addition, from July 2008 through March 2010, Randolph transported two of these women from Florida to Washington, D.C., Indiana and Georgia, with the intent of forcing them to engage in commercial sex acts.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Malisa Chokshi.
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Income Tax Evader Sentenced to 15 Months in PrisonRead the Press Release
PITTSBURGH - A resident of Clarksburg, West Virginia, has been sentenced in federal court to 15 months in prison, to be followed by three years of supervised release, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James R. Corbitt.
According to information presented to the court, during the tax years 2005 through 2009, Corbitt, an employee of Nexus Medical Services located in Westmoreland County, evaded income tax by diverting cash and checks payable to Nexus to himself, and by having Nexus pay for his personal expenses, including $77,000 for an apartment in Greensburg, $101,000 for personal cars and a motorcycle, and such items as his utilities, cable bill, and lawn and maid service. For the year 2008, the year to which he pleaded guilty, Corbitt reported income of $11,000 and tax due of $1,103, while his actual income was $167,079, upon which tax was due and owing of $29,564. The total amount of tax loss is $102,102, which does not include interest or penalties.
Corbitt was convicted in federal court in Ohio in 1993 of theft of government funds and filing a false tax return. He was sentenced to an 18-month term of incarceration on that occasion.
Prior to imposing sentence, Judge Cercone stated that the sentence “is important to deter others from cheating on their taxes.”
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Corbitt.
Idaho Prisoner Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Engaged in Sexual Chats with Teenage Girls via Social Media Websites
BOISE - Jacob Eldon Hobart, 26, of Boise, Idaho, pleaded guilty in U.S. District Court today to Possession of Sexually Explicit Images of Minors, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, the case originated in December 2012 when the Idaho Internet Crimes against Children Task Force received a report from the National Center for Missing and Exploited Children. According to that report, a social networking site had observed a user with the screen/user name of Jacob Hobart (Jacob H) presenting himself on their site as 15 years of age; however, company personnel had observed a chat conversation in which Hobart stated he was actually 25 years of age. The social networking site further reported that Hobart had communicated with a female who identified herself as being 15 years of age.
Boise Police Detectives investigated, and found hundreds of emails in Hobart’s Yahoo email from the social media site, and including emails in which Hobart had requested to be friends with dozens of teenage females, ranging in age from 13 to 19 years of age based on the ages stated in their profile. One of those girls was a 14-year-old girl from Washington State with whom Hobart exchanged sexually explicit photos. Another victim, the one who had held herself out on the social networking site as being 15, was actually a local 12-year-old middle school student, to whom Hobart had sent obscene photographs.
The charge of Possession of Sexually Explicit Images of Minors is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and from 5 years up to lifetime-supervised release.
Sentencing is set for July 22, 2014, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Hobart is currently incarcerated in the Idaho Department of Corrections, serving a term of two years fixed followed by eight years indeterminate, for an unrelated charge of sexual battery involving Lewd or Lascivious Acts on a Minor Child 16 to 17 years of age.
The case was investigated by the Boise Police Department, which is a member of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Hill City Man Sentenced for Possession with Intent to Distribute Marijuana and Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hill City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance and Possession of a Stolen Firearm was sentenced on April 21, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Levi Allen Thompson, age 32, was sentenced to 37 months in custody, 3 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Thompson was indicted for Possession with Intent to Distribute a Controlled Substance and Possession of a Stolen Firearm by a federal grand jury on July 23, 2013. He pled guilty on December 20, 2013.
On December 13, 2012, a safe containing marijuana and that belonged to the defendant was seized in Pennington County, South Dakota. Thompson was aware that the safe contained 158 grams of marijuana, and he intended to distribute at least part of that amount. In addition, between November 2012 and December 2012, Thompson possessed a Ruger .357 revolver that he knew had been stolen.
This case was investigated by the South Dakota Division of Criminal Investigation and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Hebron Man Who Filed False Tax Returns Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALAN MISKUNAS, 52, of Hebron, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation for filing false tax returns. MISKUNAS also was ordered to perform 100 hours of community service.
According to court documents and statements made in court, MISKUNAS formerly owned Bolton Flooring Center in Bolton. During the 2003 and 2004 tax years, MISKUNAS filed income tax returns with the Internal Revenue Service that under-reported Bolton Flooring Center’s gross business receipts by approximately one-half, resulting in his failure to pay more than $64,000 in personal income taxes due on that unreported income. MISKUNAS also did not file tax returns for the 2005 and 2006 tax years and failed to pay more than $88,000 in taxes owed for those years.
MISKUNAS is required to pay $152,417 in back taxes, plus applicable interest and penalties.
On February 6, 2013, MISKUNAS pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
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(203) 821-3722 [email protected]Havre Psychologist Pleads Guilty to Bribery and Tax FraudRead the Press Release
The United States Attorney's Office announced that Dr. James Howard Eastlick, Jr., the former Clinical Psychologist at the Rocky Boy Health Clinic, entered pleas today in three of four indictments handed down by the Grand Jury charging him with public corruption and tax fraud. Eastlick appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
BRIBERY OF TONY BELCOURT
Eastlick pled guilty to bribery in giving $100,000 to Tony Belcourt in November of 2009 from a company in which he controlled a 49% interest-Hunter Burns Construction. United States v. Belcourt, et al, CR-13-82-GF-BMM. The payment was characterized as a "loan" but was not paid back until 2013 when Belcourt and Eastlick became the subjects of a federal corruption investigation. Belcourt had awarded Hunter Burns Construction several construction contracts from federal funds provided to the Chippewa Cree Tribe and its corporation, the Chippewa Cree Construction Corporation, of which Belcourt was the Chief Executive Officer and Contracting Officer. Belcourt had sold cattle out of trust meaning without the knowledge and consent of the Independence Bank who held a lien against the cattle to collateralize the loans made to Belcourt and his wife. When the Bank discovered the conversion, it demanded payment of $107,000 from the auction company who had sold the cattle on Belcourt's behalf, and the auction company, in turn, demanded payment from the Belcourts.
Tony Belcourt approved and authorized a Chippewa Cree Construction Corporation payment to Hunter Burns Construction on November 21, 2009, in the amount of $148,972. Two days later, on November 23, 2009, Hunter Burns Construction issued a $100,000 check to Hailey Belcourt. Hunter Burns Construction did not have the funds to make the payment to Belcourt until the federal construction funds were deposited from the Chippewa Cree Construction Corporation. The company recorded the payment as a personal loan to Hailey Belcourt who then used the money to re-pay the livestock auction company by wire transfer of $107,153.09 on November 27, 2009. Four months later, in March of 2010, Hunter Burns Construction received a $1.7 million contract from Belcourt.
Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.
BRIBERY OF TRIBAL COUNCILMAN A
Eastlick also pled guilty to bribery in United States v. Eastlick, CR-14-33-GF-BMM which alleged that between July 28, 2009 through November 30, 2011, Eastlick and Hunter Burns Construction made $258,000 in bribe payments to a tribal councilman of the Chippewa Cree Tribal Business Committee identified in the indictment only as Tribal Councilman A. The government told the Court that Tribal Councilman A served on the Board of Directors for the Chippewa Cree Construction Corporation and the Rocky Boy's Health Care Board.
Prosecutors told the Court in an Offer of Proof that the investigation revealed that many of the transactions were not legitimate. For example, equipment purportedly sold to Hunter Burns Construction would continue to appear on Tribal Councilman A's inventory of equipment for bank loans and credit long after it was allegedly sold. One transaction was for the potential and prospective lease of property over ten years-paid in full up front-when the land was never used for any purpose by the construction company. Another payment was related to the disposal of hazardous waste which could not have been a legitimate transaction due to the regulatory requirements for the disposal of such material that Tribal Councilman A could not legally perform. Eastlick admitted that the payments were to maintain the favor of Tribal Councilman A and to keep federal contracts flowing to Hunter Burns Construction.
Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.
FILING FALSE TAX RETURNS
In United States v. Eastlick, CR-14-32-GF-BMM, Eastlick pled guilty to one count of a four count indictment charging him with filing a false tax return. During the years covered by the indictment (2008-2011), Eastlick was a Clinical Psychologist for the Rocky Boy Health Clinic on the Rocky Boy's Indian Reservation. During this same period, Eastlick operated a loan program-called the JE Loan Program-with the Chippewa Cree Tribe wherein he loaned money both to the Tribe in large amounts and, as a "pay-day" lender to individual tribal employees in smaller amounts. The loans Eastlick made for the tribe generally included interest rates of l0o/o, and were paid back within l0 weeks of Eastlick loaning the money. The annualized percentage rate (APR) for loans from the JE Loan program would constitute a 70% to 80% return. Short-term loans to individual tribal members also came with high annualized rates of interest.
In its Offer of Proof, the U.S. Attorney's Office indicated that it would prove that a significant amount of interest was never declared by Eastlick on his federal income tax returns. The government alleges that Eastlick underpaid his taxes by over $66,000 during the four year period of the indictment.
Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.
Eastlick's sentencing on the three felonies is set for August 15, 2014, in Great Falls.
The case was brought by the federal agents of the Guardians Project and was investigated by the Inspectors General of the Departments of Interior and Health and Human Services, and for the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division and the FBI.
Georgia Man Sentenced to 51 Months in Bank Fraud and Identity Theft SchemeRead the Press Release
RICHMOND, Va. – Jacquis Depree Nelson, 32, of Atlanta, Georgia, was sentenced today to 51 months in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. Nelson was also ordered to pay restitution in the amount of $261,552.00 to Wells Fargo Bank.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior United States District Judge Robert E. Payne.
Nelson pleaded guilty on February 3, 2014. According to court documents, he participated in a conspiracy involving the unauthorized withdrawal of over $260,000 from accounts held at Wells Fargo Bank. Members of the conspiracy created false forms of identification for several real Wells Fargo accountholders, using personal identifying information obtained without lawful authority. Nelson and his co-conspirators traveled from Georgia and other locations to bank branches in Virginia and South Carolina, where they posed as the individual accountholders. Using customer account information and the false forms of identification, Nelson and his co-conspirators withdrew the funds from numerous Wells Fargo accounts between November 2012 and January 2013. The co-conspirators divided the stolen proceeds among themselves following the withdrawals.
Nelson’s co-conspirator, Anthony Romey Carter, of Elk Grove, California, previously pleaded guilty and was sentenced on August 8, 2013, to 61 months’ imprisonment for his role in the scheme.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Four Indicted in Conspiracy to Bribe Post Office ManagersRead the Press Release
Station Managers Allegedly Submitted Fraudulent and Inflated Invoices for Landscaping and Cleaning Services in Exchange for Bribe Payments
Baltimore, Maryland - A federal grand jury has indicted Richard Louis Wright III, age 46; Kimberly A. Parnell, age 43; Shane Anderson, age 37, all of Baltimore; and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, on charges related to a bribery conspiracy to obtain contracts with the U.S. Postal Service. The indictment was returned on April 30, 2014.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The indictment alleges that two post office station managers accepted bribes in return for contracts for landscaping, snow removal, and cleaning services,” said U.S. Attorney Rod J. Rosenstein. “Officials who exercise governmental authority are obligated to use it for the public good and not to advance their own financial interests.”
Beginning in January 2007, Wright was the United States Postal Service (USPS) Station Manager of the Waverly Station in Baltimore, and beginning in July 2010, Parnell was the USPS Station Manager of the Pikesville Station in Pikesville, Maryland. As part of their official duties as USPS Station Managers, Wright and Parnell had the authority to contract for landscaping, snow removal, and certain cleaning services at the Post Offices they managed, and to submit invoices for those services to USPS for payment. According to the indictment, Wright and Parnell knew one another professionally and personally and consulted with one another on the operations of their respective stations, including referring contractors to one another.
The 29-count indictment alleges that beginning in October 2007 and continuing until approximately October 2013, Wright and Parnell engaged in a scheme to commit bribery, wire fraud and mail fraud by creating, approving and submitting false and inflated invoices for maintenance work allegedly performed at their respective Post Offices by Anderson, Sketers and others, and then splitting the proceeds with the alleged providers of the services.
According to the indictment, in the Spring of 2013, when one of their co-conspirators failed to make timely bribe payments to Wright and Parnell, Parnell proposed that they replace the co-conspirator with Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care, and whom they believed would make bribe payments to them in exchange for USPS contracts. Thereafter, Parnell, Wright and Anderson agreed that Parnell and Wright would submit false and inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.
Ladena Delore Sketers-Anderson (aka Ladena Sketers) operated a cleaning company called Keep U Clean Janitorial Services, LLC in Randallstown, Maryland. Wright and Sketers had been business partners in a janitorial services company before Sketers went into business as Keep U Clean. Wright used Sketers’ company for cleaning services at the Waverly Station and recommended Keep U Clean to Parnell at the Pikesville Station. The indictment alleges that Wright submitted false and inflated invoices from Keep U Clean in exchange for Sketers paying him a percentage of the funds she received from the USPS. Later, Wright began submitting Keep U Clean invoices to the USPS for cleaning work done by employees at his direction at the Waverly Station, even though he had been directly instructed not to perform contract work at the station he managed. According to the indictment, Wright also proposed to Parnell that Keep U Clean employees under his direction perform cleaning services at the Pikesville Station in exchange for a bribe payment to Parnell and Parnell agreed to that arrangement.
Finally, the indictment seeks forfeiture of any proceeds obtained directly or indirectly, as the result of the scheme, including: $591,791 for Wright; $50,470 for Parnell; $30,455 for Anderson; and $109,976 for Sketers-Anderson.
The defendants face a maximum sentence of five years in prison for the conspiracy and 15 years in prison for each count of bribery. No court appearances have been scheduled for the defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the USPS – Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Fort Thompson Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Stuart Dion, age 30, was sentenced to 15 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dion was indicted by a federal grand jury on November 14, 2013. He pled guilty on February 3, 2014.
The conviction stems from Dion failing to register as a sex offender between September 17, 2013, and October 21, 2013. Dion was previously convicted of a sex offense in federal court and is required by federal law to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Dion was immediately turned over to the custody of the U.S. Marshals Service.
Fort Lauderdale Attorney Sentenced in Connection with Scott Rothstein's Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Douglas L. Bates, 55, of Parkland, was sentenced by U.S. District Donald M. Middlebrooks to 60 months in prison, two years of supervised release, and a $20,000 fine.
Bates previously pled guilty to a Superseding Information charging him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.
The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to the factual stipulation filed in support of the guilty plea, while Bates was a partner in the Law Offices of Koppel and Bates located at 817 South University Drive, Suite 100, Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by drafting false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The Superseding Information further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Unisys Engineer and Girlfriend Admit Receiving Nearly $100,000 in Kickbacks in Connection with TSA High-Tech Phone ContractRead the Press Release
Third Defendant, Former President of Vonetex LLC, Will be Sentenced for Paying Kickbacks
TRENTON, N.J. - A former project manager for Unisys and his girlfriend today admitted they were paid nearly $100,000 in kickbacks in connection with staffing a Transportation Security Administration (TSA) contract for high-tech phone systems, U.S. Attorney Paul J. Fishman announced.
James Anderson, 55, and Vickie Idoux-Walz, 48, both of Gainesville, Ga., pleaded guilty today before U.S. District Judge Michael A. Shipp to separate informations charging them with conspiracy to solicit and accept kickbacks in connection with a government contract. Neil Metzger, 41, of Leesburg, Va., was the president of Vonetex LLC, and has already pleaded guilty. He will be sentenced tomorrow.According to documents filed in this case and statements made in court:
Vonetex is a technical services and training company. Unisys, a government contractor, won a contract from the U.S. Department of Homeland Security that included the installation and servicing of high-tech phone services for the TSA. Vonetex was awarded a subcontract through an intermediary company, Izar Associates Inc.
Vonetex was paid, through Izar, for each hour that its employees and contractors billed under the contract. Anderson was an engineer and a project manager at Unisys who supervised the contracted work. Idoux-Walz was in a romantic relationship with Anderson, but was not an employee of Vonetex, Unisys, or Izar.
Anderson admitted that in November 2008, he agreed with Metzger to accept kickback payments, paid through Idoux-Walz, that were equal to $5 or $10 per hour that each Vonetex employee and contractor billed to the contract.
Idoux-Walz admitted that in December 2008 she and Metzger entered into a written agreement in which Vonetex would pay Idoux-Walz a fee for consulting services. The agreement also stated that for each hour billed by a Vonetex resource at Unisys, Idoux-Walz was to be given credits which could be used for discounts on additional work or equipment, or redeemed for cash. Each month, Idoux-Walz sent Metzger an invoice based on hours billed by Vonetex employees and contractors, and Metzger periodically sent kickback checks to Idoux-Walz with the understanding that the money represented the kickback payments Metzger had agreed to pay Anderson.
Anderson and Idoux-Walz together received a total of $97,850 in kickbacks from Metzger.
The count of conspiracy to accept kickbacks in connection with a government contract to which Anderson and Idoux-Walz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine.
Metzger pleaded guilty on Jan. 14, 2014, to conspiring to pay kickbacks in connection with a government contract. Metzger also admitted that he made false claims against the government in the form of overbilling in June and July 2010, which resulted in a loss to the government of approximately $100,000. Metzger has entered a plea agreement with the government in which all parties agreed to a sentence of 15 months in prison. He is scheduled to be sentenced tomorrow before Judge Shipp in Trenton.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office in Trenton.
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Defense counsel:James Anderson: Andrea Bergman Esq., Trenton, N.J.
Vickie Idoux-Walz: Joshua Markowitz Esq., Lawrenceville, N.J.
Neil Metzger: Michael Sullivan Esq., Morristown, N.J., and Danny Onorato Esq., Washington, D.C.Anderson, James Information
Idoux-Walz, Vickie InformationFormer Kern County Resident Charged with Stealing Social Security BenefitsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Rosaura M. Tinajero, 56, of Omaha, Neb., and formerly of Wasco, Calif., charging her with theft of public money and two counts of wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Tinajero’s mother, a Social Security benefits recipient, died in 1987. The Social Security Administration was not notified of her death and distribution of benefits continued from June 1987 through June 2009. From March 1995 through June 2009, Tinajero obtained more than $120,000 in benefits meant for her deceased mother via check and direct deposit, and personally used the money with knowledge that she was not entitled to the benefits.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General and the United States Secret Service. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Tinajero is scheduled to be arraigned on Monday, June 9, 2014, at 1:30 p.m.
If convicted, Tinajero faces a maximum statutory penalty for theft of public money of 10 years in prison and a $250,000 fine. Wire fraud carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Elizabeth, N.J., School Attendance Officer Admits Defrauding Board of EducationRead the Press Release
NEWARK, N.J. – A former attendance liaison officer for the Elizabeth, N.J., Board of Education (EBOE) today admitted obtaining by fraud more than $5,000 by working a second job during hours when he was supposed to be tracking down truant students, U.S. Attorney Paul J. Fishman announced.
Scott J. Farley, 45, of Cranford, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him embezzling and converting to his own use more than $5,000 of money in the control and custody of the EBOE.
According to documents filed in this case and statements made in court:
Farley worked for the EBOE at an annual salary of $40,499 and $42,825 for school years 2009-2010 and 2010-2011, respectively. As an attendance liaison officer, he was expected to perform his duties during the school day, which lasted from approximately 8:15 a.m. to 3:00 p.m., by conducting home visits relating to excessive school absences by students. During this time, Farley worked in the shipping and receiving department of a private corporation based in Mountainside, N.J.
Time sheets from the corporation revealed Farley worked there during many hours when he was supposed to be working as a truant officer. Farley admitted working at the corporation during school hours on at least 100 days for both school years 2009-2010 and 2010-2011. He also admitted that during school year 2009-2010, he worked full days on approximately seven days at the corporation’s Tampa facility when the Elizabeth schools were in session and he was being paid to perform his work as a truant officer. In total, over the course of the two school years, Farley logged more than 250 hours at the corporation’s facilities during hours when he was being paid to perform duties on behalf of the EBOE.
The charge to which Farley pleaded guilty carries a maximum potential penalty of 10 years in prison and a $125,000 fine. As part of his plea agreement, Farley agreed to pay $22,065 in restitution to the Elizabeth Board of Education, reflecting the hours for which he was being paid to perform his duties as an attendance liaison officer but was actually working for the corporation. Sentencing is scheduled for August 6, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and investigators with the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office in Newark and Assistant Prosecutor Robert Vanderstreet with the Union County Prosecutor’s Office.
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Defense counsel: Timothy R. Smith and Wolodymyr Tyshchenko Esqs., Fairfield, N.J.
Farley, Scott Information
Former Canton City Alderman Found GuiltyRead the Press Release
Jackson, Miss - Calvin Louis Smith, 56, a former Canton City Alderman, was found guilty of bribery following a three-day trial in U.S. District Court, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Smith was indicted for bribery in connection with a transaction involving the City of Canton, Mississippi. He will be sentenced on July 17, 2014 at 9:30 a.m. by U.S. District Judge Henry T. Wingate. Smith faces a maximum penalty of 10 years in prison and a $250,000.00 fine.
“For the public to have confidence in their government, they must be certain that their elected officials will use their position for public good instead of personal gain,” said U. S. Attorney Gregory K. Davis. “Today’s verdict is a reminder that public officials will be held accountable when they violate the trust placed in them by the public.”
FBI Special Agent in Charge McMullen stated: “Public service is about serving one’s community. It is not meant to be self-serving. Yet, this public servant chose to use his position to serve himself. Crimes of this nature do not affect just one person or one community. Public corruption affects everyone by undermining their trust.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Florida Fraudster Gets Five YearsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Craig Lee Workman, age 42, a Florida man, was sentenced to five years in federal prison today by the Honorable J. Garvan Murtha in U.S. District Court in Brattleboro, Vermont.
Workman pleaded guilty to a fraudulent tax refund scheme that he operated in Florida and Vermont during 2010-12. Having obtained identification information for over 120 persons, Workman filed fraudulent income tax returns in their names, claiming nearly a million dollars in tax refunds. On each of the returns, he listed bank routing and account numbers for bank accounts that he controlled in Florida and Vermont, and requested direct deposit of the claimed refunds. The IRS intercepted the bulk of the fake filings, but 23 got through, resulting in over $179,000 being deposited by the U.S. Treasury into Workman’s bank accounts.
Workman has a lengthy criminal history going back 20 years, mostly in Florida. Judge Murtha rejected his pleas for leniency today at his sentencing hearing in Brattleboro, and imposed a sentence of five years, to be followed by a supervised release term of three years. Judge Murtha also ordered Workman to repay the money after his release.
Workman has been in the custody of the U.S. Marshals Service since his arrest in Florida in May, 2013. The case was investigated by the Internal Revenue Service’s Criminal Investigation Division. Workman was represented by Federal Public Defender David McColgin. The United States was represented by Assistant U.S. Attorney William Darrow.
Federal Grand Jury Indicts Amarillo Man on Drug and Firearms ChargesRead the Press Release
AMARILLO, Texas— An Amarillo, Texas, man remains in federal custody following his arrest on an indictment charging several felony drug and firearms offenses. Michael Chad Kennedy, 30, appeared before U.S. Magistrate Judge Clinton E. Averitte on those charges yesterday and was ordered detained pending a detention hearing and arraignment set for tomorrow. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Specifically, the 10-count indictment charges Kennedy with four counts of possession with intent to distribute methamphetamine; four counts of being a felon in possession of a firearm; one count of possession of an unregistered firearm; and one count of possessing a firearm in relation to a drug trafficking crime. A forfeiture allegation is also included in the indictment that would require the defendant, upon conviction, to forfeit all firearms and ammunition involved in or used in the commission of the offenses.
The indictment alleges that Kennedy possessed various amounts of methamphetamine, with the intent to distribute it, on February 23, 2013, May 16, 2013, November 27, 2013, and January 25, 2014. The indictment further alleges that Kennedy, a previously convicted felon, possessed firearms on May 16, 2013, June 1, 2013, and November 27, 2013, and that one the firearms he possessed on June 1, 2013 was an illegal sawed-off shotgun. The indictment further alleges that on November 27, 2013, Kennedy possessed a firearm in furtherance of a drug trafficking crime.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the offenses carry the following maximum statutory penalties, per count: possession with intent to distribute methamphetamine – not less than five years or more than 40 years in federal prison and a $5,000,000 fine; felon in possession of a firearm – 10 years in federal prison and a $250,000 fine; possession of an unregistered firearm – 10 years in federal prison and a $250,000 fine; and possession of a firearm in furtherance of a drug trafficking crime – five years up to life in federal prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Amarillo Police Department are conducting the investigation. Assistant U.S. Attorney Timothy Hammer is in charge of the prosecution.
Eagle Butte Man Sentenced for Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Abusive Sexual Contact with a Child was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Daniel Briggs, age 28, was sentenced to 135 months in custody, 5 years of supervised release, $43.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Briggs’ conviction is the result of an incident that occurred between December 2010 and December 2012, when Briggs was living with the victim’s mother. At times, when the mother was at work, Briggs was the victim’s caretaker, and had custody and control of the child victim, who was between the ages of 3 and 5 years old. At some point during his babysitting, Briggs had the child victim perform a sex act on him.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Briggs was immediately turned over to the custody of the U.S. Marshals Service.
Dover Man Fined for Dumping Drilling Waste into Chagrin River TributaryRead the Press Release
An Ohio man was fined $2,000 and put on probation for two years after discharging well drilling waste into Beecher Brook, a tributary of the Chagrin River, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James L. Hidey, 45, of Dover, Ohio, previously pleaded guilty to two counts of making unpermitted discharges.
Hidey worked for Great Plains Exploration, an oil and gas well drilling company based in Northeast Ohio. On two separate occasions in 2008, he directed the discharge of brine into a stormwater sewer after the completion of gas wells in Mayfield Heights and Highland Heights. The brine flowed from the stormwater sewers into Beecher Brook and eventually into the Chargrin River, according to the information.
Brine is water with a high quantity of salt dissolved into it and is used during the drilling phase of the well installation. It must be handled and disposed of properly because of the toxicity of brine.
“Clean, fresh water is our greatest resource in Northern Ohio,” Dettelbach said. “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”
“Individuals who deliberately violate environmental protection laws and jeopardize the health and safety of Ohio families and wildlife must be held accountable for their crimes. I am glad to see that justice is being served in this case,” said Ohio Attorney General Mike DeWine.
“Knowingly discharging harmful waste byproducts from drilling operations has serious consequences for natural resources and local communities,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “On several occasions, the defendant instructed his workers to dispose of drilling waste into storm sewer catch basins that ultimately flow into rivers and streams, putting human health, wildlife and the environment at serious risk.”
“We will not tolerate the criminal dumping of brine and those who do will be held accountable,” said Ohio EPA Director Craig W. Butler. “I’m proud of Ohio EPA’s Office of Special Investigations for the work they’ve done in partnership with the members of the Northeast Ohio Environmental Crimes Task Force, including the U.S. EPA Criminal Investigation Division and the Ohio Bureau of Criminal Identification and Investigation.”
This case is being prosecuted by Special Assistant United States Attorney Brad J. Beeson, following an investigation by the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, and the Ohio Environmental Protection Agency, all members of the Northeast Ohio Environmental Crimes Task Force.
Court Stops San Diego Man from Preparing Tax ReturnsRead the Press Release
A federal judge in California has permanently barred Michael I. Turner, of San Diego, from preparing federal tax returns for others, the Justice Department announced today.
In the complaint, filed in August 2013, the government alleged that Turner has prepared returns since at least 2004 but failed to sign or affix a Preparer Tax Identification Number to many of the returns that he has prepared. The complaint also alleged that Turner entered bogus deductions on his customers’ returns, primarily on the Schedule A, Itemized Deductions, in order to claim larger refunds for those customers. Further, the government alleged that when the Internal Revenue Service (IRS) audited Turner’s customers, he provided the customers with false documents in an attempt to assist them in falsely substantiating charitable contributions and employee expenses that they did not incur. Turner pleaded guilty to filing a false tax return in 2013.
In addition to barring Turner from preparing returns, the court’s civil injunction order bars Turner from serving as a representative on behalf of any person or entity before the IRS, and from owning, managing, controlling, working for or volunteering for a tax return preparation business. In consenting to the injunction, Turner did not admit to the government’s allegations.
In the past decade, the Justice Department's Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Michael I. Turner
Complaint for Permanent Injunction and Other Relief
Order of Permanent InjunctionCorfu Man Sentenced for Distribution of Child PornographyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that David Woods, 37, Corfu, N.Y., who was convicted of distribution of child pornography, was sentenced to 120 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that Woods used an on-line bulletin board system designed for viewing and sharing images and videos of child pornography. Using the email address [email protected], the defendant collected and distributed over 12,000 videos and 20,000 images of child pornography. Many of the images portrayed children, including infants and toddlers, being subjected to bondage and rape by adults.On March 6, 2012, the defendant uploaded eight videos depicting young female victims. On the bulletin board, Woods stated “I hope this gets me into VIP, but even if it doesn’t, I figured I would share.” On April 17, 2013, law enforcement officers executed a search warrant at the defendant’s residence and seized a laptop and other digital equipment containing the images of child pornography.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Colorado Residents Among Nine Charged with Conspiracy to Harvest Marijuana in Colorado for Distribution to Oklahoma and Other StatesRead the Press Release
Oklahoma City, Oklahoma – Nine people have been charged in two related complaints alleging conspiracy to harvest marijuana in Colorado for distribution to Oklahoma and other states, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Defendants in the first complaint are TERRY HARDIN WILKERSON, 71, from Oklahoma City, Oklahoma, WILLIAM JESSE HOGE, 53, from Oklahoma City, Oklahoma, CURTIS FRANK WAGNER, 49, from Crestone, Colorado, DAVID GEUBELLE, 45, from Highland Park, Illinois, CRYSTAL ADAMS, 45, from Oklahoma City, Oklahoma, MARTY SHELLABARGER, 67, from Moffatt, Colorado, and SKYLAR J. FREEMAN, 25, from Crestone, Colorado. Defendants in the second complaint are SHAWN N. MAMINAKIS, 34, from Crestone, Colorado, and DAVID LINCOLN STEELE, 48, from Crestone, Colorado.
Both complaints allege that the defendants conspired to harvest more than 100 kilograms of marijuana in Colorado and distribute it to Oklahoma and other states. For more information, reference is made the attached affidavits made part of the criminal complaints. If convicted, the defendants face no less than five and up to 40 years in federal prison and a fine of $5,000,000. The defendants are all presumed innocent unless and until proven guilty.
Wilkerson was arrested Tuesday and appeared in federal Court for his initial appearance in Oklahoma City yesterday. Hoge was arrested yesterday and appeared in federal court for his initial appearance in Oklahoma City today. Adams was arrested today and will appear for her initial appearance in federal court in Oklahoma City tomorrow. Wagner, Shellabarger, Freeman, Maminakis and Steele were arrested Tuesday and appeared in federal Court for their initial appearance in Denver yesterday. Geubelle was arrested yesterday and appeared in federal court for his initial appearance in Chicago today.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation “Operation Stale Smoke” led by the Oklahoma City District office and the Colorado Springs office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Resident Office, the Chicago Field Division, and the Oklahoma City District Office of the Drug Enforcement Administration. Valuable assistance was also provided by the United States Attorneys’ Offices for the District of Colorado and the Northern District of Illinois. This case is being prosecuted in the Western District of Oklahoma by Assistant U.S. Attorneys David P. Petermann and David L. Walling.
Cocaine Source’s Mother Laundered Drug Funds for Her SonRead the Press Release
PITTSBURGH - A resident of Antioch, Calif., pleaded guilty in federal court to a charge of violating federal money laundering laws, United States Attorney David J. Hickton announced today.
Coquese Alcorn, 65, pleaded guilty to one count before United States District Judge David S. Cercone.
IRS-Criminal Investigation joined the DEA as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. In part, the investigation relied upon search warrants, court orders, consensually recorded conversations, surveillance and information supplied by confidential sources, as well as records and documents obtained by Grand Jury and Administrative subpoenas. The investigation revealed a major cocaine distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. Defendant Robert Russell Spence, Jr. was a local fulcrum of the conspiracy, which was supplied by various cocaine sources over time. The investigation revealed that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every current man, woman and child resident of Pennsylvania to have their own $20 rock of crack cocaine. Conspiracies commonly change both members and mechanisms to adapt to changes, and this conspiracy is no different. Aside from changing cocaine sources over time, the conspiracy also changed its common manner of doing business over time as well. For example, prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California to recipients such as Spence in Pittsburgh. Documents and evidence reveal the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007, Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850 intended for another co-defendant.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 200 flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 co-defendant Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and discovered it to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On Aug. 8, 2009, more than $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine or money by means such as chartered private flights and vehicles including tractor trailers. Individuals indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.
The drug activities of supplier Damon Collins generated millions of dollars in cash. A conspiracy existed to launder those funds and resulted in several of the co-defendants structuring drug funds supplied by Collins by involving individual amounts under $10,000 to avoid the transaction reporting requirements under federal and state law, as well as concealing and disguising Collins’ drug money by actions that make it appear that they belong to others. These disguised amounts were used to pay for vehicles, home improvements, mortgage payments, apartment rentals, hotel payments, airline tickets, credit card payment, child support payments and tax payments for Collins.
Ms. Alcorn is the mother of Damon Collins, one of the cocaine sources for this large-scale cocaine distribution network. Collins was a fugitive for a period of 20 months after he was indicted in this district. During his association with the cocaine conspiracy, Collins was able to launder in excess of two million dollars in drug proceeds. The defendant assisted Mr. Collins with this laundering activity by structuring currency deposits, permitting herself to be used as a nominee in financial transactions, paying for his mortgage personally in cash and making payments for him on matters such as: his pool, credit card, and vehicles (Land Rover, Jaguar, Lexus, Mercedes Benz and others). The other alleged launderers of Collins’ money include Jared Weinberg, Howard Weinberg, Bridgette Morgan, Cindy Haughton, Alexandria Brown and Tosha Asker. Each of the co-defendants has pleaded guilty, except Howard Weinberg who is scheduled to plead guilty on May 20, 2014 at 1:15pm. The parties agree that Ms. Alcorn personally laundered $400,000 in drug funds for her son.
Judge Cercone scheduled sentencing for Sept. 11, 2014 at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt, Michael L. Ivory and Gregory J. Nescott are prosecuting this case on behalf of the government.
Buffalo Man Pleads Guilty to Clean Air Act Violation Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Rai Johnson, 35, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to violating the Clean Air Act asbestos work practice standards. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
“Todays’ conviction means that all defendants who worked directly on the Kensington Towers asbestos removal project – and who intentionally violated federal environmental laws while doing so - have now been brought to justice,” said U.S. Attorney Hochul. “This Office will not permit any company or person – including public officials - to jeopardize the health and well-being of the community through their violation of federal law.”
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was a supervisor at Johnson Contracting of WNY, Inc., an asbestos abatement company that was hired to conduct asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo. In a pre-abatement asbestos survey, each building at Kensington Towers was found to contain 63,000 square feet of regulated asbestos containing material. The asbestos abatement project lasted from June 2009 to January 2010
During the asbestos abatement of building A-1, Johnson, and employees working under his direction, violated the Clean Air Act asbestos work practice standards by: (i) failing to adequately wet Regulated Asbestos during stripping and removal operations; (ii) failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers; and (iii) causing Regulated Asbestos to be dropped down holes cut through the floors in Building A-1.
Rai Johnson is the sixth defendant to plead guilty as part of the Kensington Towers asbestos abatement project. Ernest Johnson, and JMD project monitors Evan Harnden, Chris Coseglia, Henry Hawkins and Brian Scott, have also been convicted. Charges are still pending against current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants are expected to go on trial May 13, 2014. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sentencing is scheduled for August 18, 2014, 2014 at 1:00 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Authorities Seek Tyler Man in Cocaine ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Tyler, Texas man is being sought by authorities in a drug conspiracy case in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
On Apr. 9, 2014, Tyler Police Department, Federal Bureau of Investigation, and Texas Rangers executed a search warrant for narcotics at a residence located in Tyler Texas. This was the result of a one-year undercover narcotics investigation led by the Tyler Police Department in conjunction with the F.B.I. Law enforcement officials arrested Micol Jauron Sears, 39, of Tyler. Sears was charged in a federal indictment with conspiracy to possess with intent to distribute cocaine base. Federal and local law enforcement officials are seeking a second suspect, also named in the indictment, identified as Calvin Donell Dorsey, a 37-year-old black male, of Tyler. Dorsey is charged with conspiracy to possess with intent to distribute cocaine base. If you have any information to the whereabouts of Dorsey please contact your Federal or local law enforcement agency.
Attached: Photo of Calvin Donell Dorsey
Allen Man Sentenced for First Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota, man convicted of First Degree Burglary was sentenced on April 28, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George Cortier, age 26, was sentenced to 6 months in custody, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cortier was indicted for First Degree Burglary by a federal grand jury on November 19, 2013. He pled guilty on January 13, 2014.
The conviction relates to an incident that happened in July of 2013 when Cortier entered a residence through a basement window during the nighttime while the resident of the home was sleeping. Once inside the home, Cortier stole three television sets, a VCR, a handsaw, and a chainsaw.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Cortier was immediately turned over to the custody of the U.S. Marshals Service.
Alabama Man Indicted for Threatening African-American Man and Another Person at RestaurantRead the Press Release
Jeremy Heath Higgins was indicted for threatening an African-American man at a Quinton, Alabama, restaurant, and for threatening another person who ordered Higgins to leave the restaurant due to his behavior, Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Joyce Vance for the Northern District of Alabama announced today.
Higgins, 28, was charged in a three count indictment returned yesterday by a federal grand jury in the U.S. District Court for the Northern District of Alabama. The indictment charges him with one felony count and two misdemeanor counts of interference with a federally-protected activity. The indictment alleges that on June 14, 2013, Higgins approached and threatened an African-American man at the Alabama Rose Steakhouse because the man was present at the restaurant with a white woman. According to the indictment, another person ordered Higgins to leave the premises of the restaurant because of Higgins’ behavior toward the African-American man, after which Higgins allegedly shouted a threat to burn down the restaurant. The indictment further alleges that Higgins threatened the person who had ordered him to leave the restaurant by painting graffiti on the restaurant’s exterior and fence.
If convicted of the felony count of the indictment, Higgins could face a maximum sentence of 10 years in prison and a $250,000 fine. For each of the misdemeanor charges, Higgins could face a maximum sentence of one year in prison and a $200,000 fine.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Robin B. Mark of the Northern District of Alabama and Trial Attorney David Reese of the Justice Department’s Civil Rights Division.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
25 Charged After Fbi Task Force Investigation into Hartford Gang-related Drug TraffickingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced that 25 individuals have been charged with federal narcotics offenses related to the gang-related distribution of crack cocaine in Hartford’s North End.
According to allegations made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified MELKUAN SCOTT, also known as “Young God,” “Mel,” “Young” and “YG,” 23, as the alleged leader of the West Hell street gang who, along with his associates, distributed crack cocaine in the Westland Street area of Hartford.
SCOTT and five co-defendants were arrested on April 15, 2014, after they allegedly participated in a quarter-kilogram crack cocaine transaction. The investigation culminated yesterday with the arrest of nine individuals.
Charged in a 52-count indictment, which was returned by a federal grand jury in New Haven on April 24, 2014, are:
MELKUAN SCOTT, a.k.a. “Young God,” “Mel,” “Young” and “YG,” 23, of Eastford Street, Hartford, and Lake Road, Andover
ARTHUR STANLEY, a.k.a. “Wigs,” “P,” and “Peno,” 24, of Townley Street, Hartford
JEFF ANTOINE, a.k.a. “Little Homie,” 19, of Barbour Street, Hartford
RASHAWN DUBOSE, a.k.a. “Chubbs,” and “Trev,” 22, of Love Lane, Hartford
GREGORY THOMAS, a.k.a. “Quanny” and “Jim,” 23, of Earle Street, Hartford
TYSHAWN McDADE, a.k.a. “S Dot” and “S Diddy,” 29, of Homestead Avenue, Hartford
AKEEM MANOO, a.k.a. “Keeme,” 23, of Pliny Street, Hartford, RICARDO HOWE, a.k.a. “Dino” and “Tyson,” 25, of Cornwall Street, Hartford
NEHELIAH BARNETT, a.k.a. “Neagmiah,” “Nelly,” “Ney” and “Nehemiah,” 26, of Love Lane, Hartford
RAYMOND RIVERA, a.k.a. “White Boy,” 24, of Sheldon Street, Hartford
KYRIN-ROBERT JACKSON, a.k.a. “Ky,” 23, of Martin Street, Hartford
*GABRIEL HORACE WILLIAMS-BEY, a.k.a. “G Money,” “Money” and “Mugga,” 25, of Manchester Street, Hartford
TAFARIE GREEN, a.k.a. “Farie,” 24, of Grandview Terrace, Hartford
IRIS PEREZ, 40, of Dudley Street, Manchester, AFESHA MANOO, a.k.a. “Fesha” and “Fee,” 23, of Pliny Street, Hartford
HORACE STARKS, JR., a.k.a. “Head” and “Little Head,” 22, of Burnside Avenue, East Hartford, JAMIE COLEMAN, a.k.a. “City,” 23, of New Britain Avenue, West Hartford
ARNOLD THOMPSON, a.k.a. “B,” 24, of Garden Street, Hartford
JERROD HALL, a.k.a. “Slime,” 20, of Winchester Street, Hartford
RAQUIM SMITH, a.k.a. “Bud,” “Butter” and “Rakim,” 21, of Westland Street, Hartford
JAMAL HOWELL, a.k.a. “Squizzy,” 28, of Eggleston Street, Bloomfield
RASHAWN HILL, 32, of Winchester Street, Hartford
JASON WATSON, a.k.a. “Noggin,” 26, of Earle Street, Hartford
SHAQILLE BROWN, a.k.a. “Shaq,” 21, of Oakland Terrace, Hartford
*MICHAEL MORRISON, a.k.a. “Nazzie,” 24, of Norfolk Street, Hartford(*WILLIAMS-BEY and MORRISON are currently being sought by law enforcement. Citizens with knowledge of their whereabouts, or with information that may be helpful the investigation of this matter, are encouraged to call the FBI at 203-777-6311.)
“Gang-related drug activity terrorizes and tears apart the fabric of our communities,” stated U.S. Attorney Daly. “The U.S. Attorney’s Office and our law enforcement partners are prepared to use the full weight of federal law to prosecute individuals involved in gangs and related activity. I commend the work of the FBI’s Northern Connecticut Violent Crimes Task Force, which is committed to investigating serious criminal behavior in Hartford and rooting out violent individuals from our communities. This investigation is ongoing. We will continue to work closely with our state counterparts to investigate acts of violence that may relate to this alleged drug trafficking activity.”
“The distribution of narcotics allegedly undertaken by members and associates of the West Hell street gang has been seriously disrupted as a result of this successful long-term investigation by the Northern Connecticut Violent Crimes Task Force,” stated FBI Special Agent in Charge Ferrick. “It is our hope that this continuing investigation will break West Hell’s stronghold on some of Hartford’s north end neighborhoods. Any group that attempts to fill the void created by these arrests will suffer the very same fate.”
“This effort is a perfect demonstration of the benefits of all our law enforcement partners, local, state and federal, all working in concert to achieve the same objective of stemming violence in our city streets,” stated Chief Rovella. “Law enforcement believes that the group targeted in this operation not only distributes drugs, but has had a propensity for gun violence. We are committed to working together with both the community and our law enforcement partners to make our neighborhoods safer.”
The indictment charges SCOTT, STANLEY, ANTOINE, DUBOSE, THOMAS, McDADE, AKEEM MANOO, HOWE, BARNETT, RIVERA, JACKSON, WILLIAMS-BEY, GREEN, PEREZ, AFESHA MANOO, and STARKS with conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”). If convicted of this charge, based on the quantity of narcotics charged, SCOTT, STANLEY, ANTOINE, DUBOSE, THOMAS, McDADE, AKEEM MANOO and HOWE face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and BARNETT, RIVERA, JACKSON, WILLIAMS-BEY, GREEN, PEREZ, AFESHA MANOO and STARKS, face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
SCOTT, STANLEY, ANTOINE, DUBOSE, THOMAS, McDADE, AKEEM MANOO, HOWE, RIVERA, WILLIAMS-BEY, and STARKS are charged with one or more counts of possession with intent to distribute, and distribution of, various quantities of crack cocaine. SCOTT and STANLEY are also charged with multiple counts of possession with intent to distribute, and distribution of, crack cocaine and powder cocaine.
COLEMAN, THOMPSON, HALL, SMITH, HOWELL, BROWN and MORRISON are charged with use of telephone to facilitate the distribution of crack cocaine, and HILL and WATSON, are charged with use of a telephone to facilitate the distribution of heroin. If convicted of this charge, each defendant faces a maximum term of imprisonment of four years.
SCOTT, DUBOSE and BARNETT are charged with one count of maintaining a premise to manufacture a controlled substance. These defendants are alleged to have used an apartment at 33-35 Love Lane in Hartford to convert, or “cook,” cocaine into crack cocaine. If convicted of this charge, each defendant faces a maximum term of imprisonment of 20 years.
Finally, the indictment charges SCOTT, with one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years. A loaded Heckler & Koch, model P2000, .40 caliber handgun was found during a search of SCOTT’s residence on April 15, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
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(203) 821-3722 [email protected]** CLARIFICATION** Intrieri Sentenced to 30 Months for Wire Fraud **CLARIFICATION**Read the Press Release
- RIFICATION**
Please be advised that Northeast Metal Traders was mistakenly named as being affiliated with STEPHEN SALVATORE INTRIERI in the news release issued below. In fact, Northeast Metal Traders has no affiliation with Mr. Intrieri or his business affairs. The wording of the press release and the document filed with the Court lacked clarity and the United States Attorney regrets any misunderstanding the drafting error may have created for the company or its customers.
ORIGINAL PRESS RELEASE DATED Wednesday, February 26, 2014 below
The United States Attorney(s Office announced that STEPHEN SALVATORE INTRIERI, 30, of Mount Laurel, New Jersey, was sentenced on February 20, 2014, to a term of 30 months in federal prison for with three years of supervised release to follow, for running an interstate scrap metal scam. Intrieri was sentenced by U.S. District Judge Dana L. Christensen in Missoula. Christensen also ordered Intrieri to pay $326,474.36 in restitution.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Tim Racicot
Whitefish Police Department initially received a complaint from an officer with a New Jersey scrap metal procurement company that buys scrap metal in the United States and sells it overseas. On February 29, 2012, the company received a call from "Tony Giordano," a salesman for Montana Metal Recyclers ("MMR"), which was allegedly doing business from Whitefish, about purchasing scrap metal. An agreement was reached and on June 8, 2012, the New Jersey company wired $19,000 to MMR's bank account at Bank of America.
The officer of the New Jersey company told police that he was cautious in his dealings with Giordano, but Giordano's knowledge of the scrap metal industry made him comfortable proceeding with the deal after receiving pictures of the material he was purchasing and Giordano's answers to some technical questions about the industry and the shipment. After he sent the money, Giordano could never be reached and the company never received the scrap metal it had purchased. When the company official was later asked if he had prior interactions with Intrieri, he described being defrauded out of $30,000 by Intrieri and Northeast Metal Traders in approximately 2009, and provided the documents from that transaction.
It is not uncommon for persons engaged in telemarketing fraud to return to prior victims-a technique referred to as "reloading"--with assurances that they want to redeem themselves by making it up to the victim with a second deal often more lucrative than the first. This scam prays on the desire to make up for lost investment and the chance to recoup lost funds is often too seductive to resist.
Another victim contacted the Whitefish police-as well as the Secret Service in New York-to report that he paid MMR $95,000 on the basis of representations made by a man who called himself "Tony Giordano," to buy scrap metal that he never received. The second victim, A.B., made two attempts to verify the legitimacy of MMR, including one with a person, A.W., whose name was referenced in a sales agreement to which MMR was a party. A.B. received a response to his email to A.W. indicating MMR was a reputable company, but when he actually spoke with A.W., he learned that A.W. did not send the email and had never heard of MMR.
The Secret Service in New York initiated an investigation into MMR, during which they discovered MMR did not have a facility or office at the address in Whitefish listed on the incorporation documents. They traced some of the money that paid to MMR to the purchase of a $37,510 engagement ring by Intrieri on February 10, 2012, from Jay Roberts Jewelers in Marlton, New Jersey. Intrieri paid for the ring with a cashier's check from RBS Citizens Bank. The owner of the jewelry store was interviewed and confirmed that a man who provided the name Steve Intrieri bought a 3-carat diamond engagement ring. Intrieri told the jeweler that he lived in Bayonne, NJ, and his parents lived in Mount Laurel, NJ.
The second victim was Facebook friends with Intrieri and told one of the investigating agents that Intrieri proposed to his girlfriend on February 11, 2012, and posted pictures of her wearing a large diamond ring. The second victim provided screen shots of the posts to the Secret Service and the owner of the jewelry store identified the ring that he sold Intrieri in the photo from the post on his fiancé's Facebook page. The owner also identified Intrieri from the RBS Citizen's Bank surveillance, which was captured at the same time he obtained the cashier's check to pay for the ring. The agents in New York eventually turned over their investigation to an agent in Montana, given that MMR was incorporated in Montana and allegedly had a business address in Whitefish.
RBS Citizens Bank froze MMR's account sometime around February 15, 2012. MMR's first statement for the Bank of America account covers the time period from February 15-29, 2012, which indicates it was opened the same time the RBS account was frozen. Intrieri wired more than $125,000 from the MMR Bank of America account into his personal Chase bank account, and nearly $10,000 was wired into his fiancé's account. Altogether, it appears that Intrieri received approximately $370,000 from the various victims of the MMR scheme. Approximately $49,000 was returned to the second victim with the RBS Citizens account was frozen.
Investigating agents found that Intrieri was affiliated with seven different businesses, at least four of which appeared to deal with scrap metal sales. Their searches revealed that Intrieri had been the subject of prior Secret Service investigations and had a criminal history. The agents also interviewed other victims of Intrieri's scheme, who provided information consistent with what was relayed by the victims who had contacted the Whitefish Police Department.
U.S. Attorney Mike Cotter reminded all Montanans to be wary of "cold calls" promising lucrative returns, particularly if you have been a prior victim of telemarketing fraud.
Unsolicited calls from people you do not know, making promises you want to believe, are most often completely fraudulent. These swindlers feed on people's dreams of an easier-more financially secure-future. With one phone call, they can steal those dreams by taking away all you've saved and everything you were saving for. And if you've been fooled before they will be back to take whatever they did not get the first time around." -- Mike Cotter, U.S. Attorney for Montana.
30 April 2014
West Palm Beach Police Officer Pleads Guilty to Selling Controlled Substances While in Uniform and on DutyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, David W. Bourne, Special Agent in Charge, Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, and Brian Kummerlen, Interim Chief, West Palm Beach Police Department, announce that Dewitt McDonald, 45, of Wellington, pled guilty to a one-count information charging him with knowingly carrying a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). Sentencing is scheduled for July 18, 2014 at 9:00 a.m. in Fort Lauderdale before U.S. District Judge James I. Cohn.
According to the stipulated statement of facts filed with the Court, the defendant was a police officer with the West Palm Beach Police Department. While employed as a police officer, the defendant operated two businesses: Prime Performance Wellness Centers, Inc., located in Lake Worth, and Prime Health and Rejuvenation Clinic, located in Wellington, through which he unlawfully distributed anabolic steroids and other prescription drugs. The stipulated statement of facts further states that on March 5, 2013, while on duty and carrying his Smith & Wesson MP40 pistol, the defendant made a delivery of these drugs to another officer of the West Palm Beach Police Department.
The defendant faces a minimum sentence of five years in prison and a maximum statutory sentence of up to life in prison.
Mr. Ferrer commended the investigative efforts of the FBI and FDA Office of Criminal Investigations. Mr. Ferrer also thanked the West Palm Beach Police Department for their cooperation and assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan, Paul F. Schwartz, and Lawrence D. LaVecchio.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.